Privacy, fees and banking compensation remain unresolved.
STRASBOURG, FRANCE — July 2026. The European Parliament has confirmed its negotiating position on the digital euro, clearing the way for final talks with European Union governments. The negotiations will determine the legal framework for a new electronic form of central-bank money. Final approval is expected before the end of 2026.
The digital euro would be issued and backed by the European Central Bank, complementing rather than replacing cash and existing bank accounts. Consumers could store it in a dedicated digital wallet and use it for payments in shops, online or between individuals. The system is expected to operate both with and without an internet connection.
European lawmakers want basic services to remain free for citizens while introducing strong privacy safeguards. The ECB would provide the underlying infrastructure, but banks and other regulated payment providers would distribute wallets and manage customer services. Individual holdings would be limited to prevent large movements of deposits from commercial banks.
One of the most sensitive issues is how banks and payment providers will be compensated for operating the system. Negotiators must also determine how fees will be divided throughout the payment chain. Merchants are expected to pay lower transaction charges than those currently associated with many card payments.
The most intensive negotiations are expected during the autumn. A pilot program could begin in 2027, while the ECB aims to be ready for a possible retail launch in 2029. However, the project will proceed only after legislation is adopted and the central bank formally decides to issue the currency.
Europe is moving closer to creating public money for the digital age.